The Impact Of Environmental, Social And Governance On Financial Performance

As the problem of climate change becomes more and more serious,governments of all countries are trying their best to mitigate and adapt to the influence of climate change.As the backbone of the country's economic development,companies also need to play an important role in it.ESG serves as a measure of business,environment,and society.The bridge between responsibilities is extremely important today.Exploring the impact of corporate ESG performance on financial performance can help companies better deal with environmental and social issues while ensuring their own operating results.This paper uses empirical analysis to explore the relationship between corporate environmental,social and corporate governance(ESG)performance and financial performance.The empirical analysis takes the data of listed companies in China and the United States from 2018 to 2019 as a sample.The empirical results show that: first,the company's active ESG performance can directly and positively affect the company's financial performance;second,the company's active ESG performance can indirectly improve the company's financial performance by promoting the company's technological innovation;third,the company's ESG performance There are regional and industrial heterogeneity in the impact of financial performance.The impact of ESG performance of US companies on financial performance is more significant than that of Chinese companies.The impact of Chinese mainland companies is more significant than that of Taiwanese companies.Enterprises in the western region are prominent,and enterprises in the secondary industry are more prominent than those in the tertiary industry.On the basis of empirical analysis,this article selects Chongqing Porton Pharmaceutical Technology Co.,Ltd.to conduct a case analysis.Based on specific interpretations of its ESG performance,technological innovation,and financial performance,it more intuitively reflects the three As a result,it is found that the ESG performance of Boten shares can directly and positively affect the financial performance of the company,and it can also help the company control costs and improve the core competitiveness of the company by promoting technological innovation,thereby indirectly improving the financial performance of the company.Finally,based on the research results,this article provides relevant support to the government in promoting the implementation of ESG systems and policies,and provides relevant opinions and references to enterprises in improving the awareness and ability of fulfilling ESG responsibilities.